Key Decision Making Alignment = Supply Chain Alignment

(1)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 1

Key Decision Making Alignment =

Supply Chain Alignment

(2)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 2

Instructor Introduction

Herman Estrada

CEO at Calafia BMT S de RL de CV, Supply Chain Management Consultant

[email protected]

Summary

Herman Estrada is a founding member and CEO of Calafia BMT, also participates as consultant in the areas of Supply Chain

Management, Six Sigma, and Lean Production, for Global accounts such as Pfizer and DHL, as well as national account

such as Grupo Modelo, Fármacos Nacionales and Fabrica de Papel San Francisco. Prior to the founding of the Calafia

BMT, Herman was responsible for leading projects of new Business and Operations Development, Inventory Management,

Product Data Management and consulting in Industrial Engineering, Six Sigma, Lean Production and Supply Chain

Management. Herman publishes articles at CNN Expansion Manufactura, and has been interviewed for opinions in

multiple business journals.

Specialties

Supply Chain Management, Lean, Six Sigma, Process Re-Engineering, Change Management, S&OP

(SOP), Planning, Procurement, Production, Distribution, Return Process, Operational Governance

Experience

CEO at Calafia BMT. May 2005 - Present

Executive Director, The AIT Group Mexico at The AIT Group, Inc.. 2001 - 2005

Engineering Change Manager at Kenworth Mexicana SA de CV. 1995 - 1998

Education

Supply Chain Council SCOR Certified Professional, Supply Chain Management, 2004

Supply Chain Council SCOR Certified Instructor, Supply Chain Management, 2010

The AIT Group, Inc.. Black Belt, Lean Six Sigma, 2001 - 2002

Purdue University. MSIE, Operations Research, Supply Chain Management, 1998 - 2001

CETYS Universidad. IE, Industrial Engineering in Production, 1990 - 1994

(3)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 3

About Supply Chain Council

•

Formed in 1996 to

create and evolve a standard industry process

reference mode

l

of the supply chain for the benefit of helping

companies rapidly and dramatically improve supply chain operations

•

SCC has established the supply chain world’s most widely accepted

framework – the SCOR

®

process reference model – for

evaluating and

comparing supply chain activities and their performance

›

It can be used to describe supply chains that are very simple or

very complex using a common set of definitions and enabling a

common understanding

›

It lets companies quickly determine and compare the performance

of supply chain and related operations within their company or

against other companies

•

SCC

continually advances its tools and educates members

about

how companies are capitalizing on those tools

›

With membership open to all interested organizations

›

Global presence, volunteer driven

(4)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 4

Global Scope With Over 800

Member Organizations

Also developing chapters in India

and the Middle East

0% 10% 20% 30% 40% 50%

Non-Profit/Academic

Consultant

Enabling Technology

End User

SME

Government

Member Affiliation

Member Distribution Geographic

China

Australia/New

Zealand

South Africa

Latin America

Southeast

Asia

Japan

Europe

North

America

(5)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 5

Supply Chain

•

SCOR defines supply chain as:

“ The processes that plan and execute the

acquisition of materials, transformation of

materials in sellable products, delivery and

return of products and services in support

of customer orders ”

Whether from

Cow to Cone,

Crude to Car or

from Rock to

Ring, SCOR is

not limited by

organizational

boundaries

SCOR can be

applied to supply

chains in any

industry and to

any organization

in the chain

Whether from

Cow to Cone,

Crude to Car or

from Rock to

Ring, SCOR is

not limited by

organizational

boundaries

SCOR can be

applied to supply

chains in any

industry and to

any organization

in the chain

Supplier

Customer

Suppliers’

Supplier

Source

Internal or External

Your Organization

Return

Deliver

Source

Make

Return

Plan

Deliver

Return

Source

Return

Make

Source

Return

Plan

Deliver

Return

Delive

r

Make

Plan

Return

Customers’

Customer

5

(6)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 6

(7)

Working Groups

•

Comprised of “volunteers” from global open industry

call under the guidance of Caspar Hunsche, CTO

•

Membership not required – open to all

•

SCOR 11.0

•

DCOR 3.0

•

CCOR 2.0

•

Best Practices

•

Sustainability – GreenSCOR

•

Risk Management

•

Reverse Logistics

•

SCOR Convergence

•

SCM Skills – Now, Supply Chain Talent Academic

(8)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 8

Industry Groups

•

Comprised and managed by “volunteers” from global

open industry call under the guidance of Carolyn

Lawrence, Special Programs Administrator

•

Membership not required – open to all

•

Aerospace & Defense Industry – SCW-NA 5/24

•

Automotive (OEM/Tiered Supplier Segment) Industry

•

Automotive Aftermarket Industry Association

•

Energy, Oil & Gas Industry

•

Hi Tech & Electronics Industry

•

Software Industry

(9)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 9

Industry Association Member Affiliations

•

APICS

•

Institute for Supply Management (ISM)

•

Council of Supply Chain Management Professionals (CSCMP)

•

Automotive Aftermarket Industry Association (AAIA)

•

GS1 globally

•

Specialty Equipment Market Association (SEMA)

•

Material Handling Industry of America (MHIA)

•

Reverse Logistics Association (RLA)

•

Diverse Manufacturing Supply Chain Alliance (DMSCA)

•

Women's Business Enterprise National Council (WBENC)

•

Industry Partners with most industry conference producers &

publications

The Supply Chain Council Continues to be recognized as the global

industry standard for supply chain process definition, reference, and

(10)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 10

(11)

Stock Market Volatility, Oil Prices, Labor,

Political Instability, Access to Capital

Reducing Total Supply

Chain Costs: Leveraging

Technology

Supply Chain Resiliency

& Sustainability:

Risk Management

(Security/Counterfeiting)

& Green

(Product/Supply Chain)

Reducing Inventory/

Working Capital/ Asset

Management

Competing in a

Global Market,

New Entrants:

Foreign & Internet

Providing Superior & Consistent

Customer Service While Increasing

Revenue & Margin

Business as Usual Has Been Cancelled:

Change is Inevitable, Growth is Optional!

The Song Remains the Same Across Industry:

Change and Challenge are Constants

(12)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 12

The New Normal?

•

Managing, Retaining, and Recruiting Talent Is Increasingly More

Challenging

•

Lack of Management Process Standards and Cross Training Inhibits

Succession and Consistency

•

Lack of Visibility to Cross-Functional Process Requirements and

Integration an Inhibitor to Collaboration and Orchestration of Supply

Chain Activities

•

Poor Daily Forecast Accuracy Results in Extensive “fire fighting” to

Resolve Variation from Plan

•

Planners and Schedulers Rely More on Custom Spreadsheets than

Enterprise Planning Systems

•

Lack of Visibility to Changes Upstream and Downstream Result in

Frequent Inventory Imbalances

•

Inability to Share Information with other Functions and Planners

•

Lack of Performance Information and Daily Decision Support Tools

•

Inability to Optimize Resources, Inventory and Operations to Maximize

Profitability

Effective Supply Chain Management and Operations Excellence

are Central Pillars for a Competitive Strategy!

(13)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 13

Superior Supply Chain Management (SCM) has

Long Been a Source of Competitive Advantage

$81.32

$70.12

$91.49

$56.36

$80.52

$168.11

$22.86

$29.48

$23.98

$9.75

$24.60

$24.58

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

Consumer Products/Packaged Goods

Electronics Industrial Products Petroleum/Chemical Retail and Wholesale Services

Supply chain management costs per $1,000 revenue

Parity (50th Percentile)

Superior (90th Percentile)

Source: APQC, SCORmark benchmarking database (

www.apqc.org/scc

)

Best-in-class Companies Outperform Their Median Competitors with

more than a 50% Cost Advantage… 14 of AMR’s Top 25 ar

e SCC members!

(14)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 14

The Ultimate Goal of the Transformation to

Operations Excellence is to Increase Shareholder Value

•

Improve customer service

and response

•

Optimize inventory flow,

utilization & productivity

•

Best-in-class customer

relationships

•

Differentiated service

capabilities

•

Best-in-class strategic

supplier partnerships

•

Leverage outsourcing of

business processes

•

Unique supply chain models

& Asset Utilization

The Supply Chain

Impacts . . .

& Shareholder

Value

Improve

Capital

Efficiency

Increase

Profit

Increase

Shareholder

Value

(ROIC)

All Financial

Metrics . . .

Liberate

Working

Capital

Reduce

Fixed

Capital

Increase

Revenue

and Margin

Optimize

Cost Model

Effective Supply Chain Management can increase Return on Invested Capital

(ROIC) by 30% and More!

(15)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 15

SCOR Index of Publicly Traded Company Members

Companies with a Focus on Supply Chain Improvement

Outperform the Market, Even in Tough Times!

(16)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 16

Best Practices Leadership is the Foundation for

Profitable Growth to Attain Market Leadership

LEADERSHIP in

OPERATIONS EXCELLENCE

HIGHER

MARKET

SHARE

GREATER

VALUE

TO CUSTOMERS

NEW PRODUCTS, SERVICES,

COST IMPROVEMENTS

SUPERIOR

FINANCIAL

RETURNS

REINVEST AT A

HIGHER RATE

THAN

COMPETITORS

Competing in the 21

st

Century Requires New Thinking and Operations

(17)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 17

Traditional Supply Chain Thinking

Time

Sa

les

Sa

les

Time

Sa

les

Time

Sa

les

Time

Manufacturer

Distributor

Wholesaler

Retailer

Manufacturing

Distribution

Point of Sale

Consumer

Supplier

Sourcing

•

Bullwhipped Demand Signals

•

Bullwhipped Demand Signals

•

Little Collaboration

•

Excess Inventory

•

High Execution Costs

•

Stockouts

(18)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 18

The Supply Chain is Evolving to a

Collaborative Supply Network

Manufacturers

Wholesale

Distributors

Suppliers

Customer

Demand

Info

Goods

Contract

Manufacturers

Logistics

Providers

Virtual

Manufacturers

Retailers

Internet/

Portals

Internet/

Portals

Internet/

Portals

Companies Must Transform Their Operating Processes To Become

Customer Focused, Demand Responsive, Collaborative, & Profitable

(19)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 19

Technology Drivers of Change

•

Cloud Computing

›

Supply Chain Visibility

›

Software as a Service (SaaS)/On Demand

›

Location Based Technology/Mobility/Telematics

›

Business Intelligence/Decision Support

•

Auto Id/Information

›

Beyond RFID

›

Voice Recognition/Response

›

Intelligent Sensors, Monitors, Devices

•

Robotics Extending from Manufacturing to Logistics

›

Picking, Packing, Putaway

›

Load, Unload

•

Internet Transparency & Social Media for Business

›

LinkedIn, Twitter, Blogging, Search

›

Offers, Location, Orders, Navigation, Behavior

The Convergence of Emerging Technologies will lead to New Applications

for Integrating Planning & Execution!

(20)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 20

Vendor

Crossdock &

Outbound

Consolidation

Customer

Distribution

Center

Custom Pack &

Label

Smart Information

A New Paradigm is Emerging:

The Smart Supply Network

•

Optimization for Visibility & Global Flow Control

•

Smart Transactions (Telematics/RFID) Convey Information in

Real Time Across the Supply Network… Paperless!

•

Convergence of Planning & Execution - Basis for Demand

Planning/Crossdocking/Outbound Consolidation

•

Optimum Supply Network Material Flow through

Collaborative, Synchronized Activity Planning & Scheduling

Smart Information

Companies must define their supply chain processes, metrics, best practices and

talent requirements to leverage a new paradigm in supply chain management to

(21)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 21

HOW COMPANIES USE SCOR TO

(22)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 22

What is SCOR

®

?

•

SCOR is a supply chain

process reference model

containing over 200

process

elements

, 550

metrics

, and

500

best practices

including

risk and environmental

management and HR SEAT

•

Organized around the

five

primary management

processes

of Plan, Source,

Make, Deliver and Return

•

Developed by the industry

for use as

an industry open

standard

- Any interested

organization can participate

in its continual development

22

Customer

pr

oc

esses

Supplier

pr

oc

esses

Supply Chain

Custo

mer

pr

ocesses

Supplier

pr

oc

esses

Supply Chain

Process, arrow indicates material flow direction

Process, no material flow

Information flow

Deliver

Make

Source

Return

Plan

(23)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 23

About SCOR: A Process Framework

•

Process frameworks deliver the known concepts of

business process reengineering, benchmarking,

best practices and organizational design in a

cross-functional framework

›

Standard

processes

; Plan, Source, Make, Deliver, Return

›

Standard

metrics

: Perfect Order Fulfillment,

Cash-to-Cash Cycle Time, Cost of Goods Sold,..

›

Standard

practices

: EDI, CPFR, S&OP, Cross-Training, ..

›

Standard job

skills

: Lean, Accounting, Solicitation, ..

•

Pre-defined relationships between metrics,

processes, practices and skills

(24)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 24

A Process Framework

•

Combining 4 techniques into a single integrated

approach

Business Process

Re-engineering

Performance

Benchmarking

Best Practices

Analysis

Organizational

Design

Capture the ‘as

-is

’

business activity and

design the future

‘to

-

be’ state

Quantify relative

performance of

similar supply chains

and establish

internal targets

Identify the practices

and software

solutions that result

in significantly better

performance

Assess skills and

performance needs

and align staff and

staffing needs to

internal targets

Process Reference Framework

Processes

Performance

(metrics)

Practices

People

(skills)

(25)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 25

About SCOR: Supply Chain

•

Viewing a company as processes (domains)

Cus

tome

r proc

es

se

s

Sup

pl

ier

proce

ss

es

Product/Portfolio Management

Supply Chain

SCOR ®

Product Design

DCOR™

Sales & Support

CCOR™

Custome

r proce

ss

es

Sup

pl

ier

proce

ss

es

Product/Portfolio

Management

Supply Chain

SCOR ®

Product &

Process Design

DCOR™

Sales &

Support

CCOR™

25

(26)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 26

(27)

The What and Why of

Visualization/Modeling

'Modeling' has two major components:

•

Gathering process knowledge and

•

Presenting process knowledge

Using SCOR, Supply Chains can be rapidly defined,

processes identified, and metrics set in a common and

consistent method across functions.

(28)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 28

SCOR Supported Model Types

Business activity

Diagram Type

Description

Identify Supply

Chains

Definition Matrix Identify and Prioritize Supply

Chains

Managing supply

chains

Geographic map Standard view for supply chain

owners/managers (what is

sourced, stored and/or goes

where)

Managing supply

chain configurations

Thread diagram

Level 2 process decisions.

Replace, reposition and/or

eliminate processes

Managing processes Workflow

Level 3 and 4 process decisions.

Outline process disconnects,

missing information

(29)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 29

(30)

Supply-Chain Definition

•

Supply Chains are the Totality of processes spanning

operations from supplier to end-customer, focused on

material, work, human, cash and information flow

•

We use a tool called the Supply Chain Definition

Matrix to define the supply-chains within an enterprise

•

The Supply Chain Definition (i/o Matrix) Matrix helps

determine the number and size of supply chains

•

Columns: Customers (Output)

•

Rows: Products (Input)

•

The intersection of each column and row – if the

goods or services flow to the customer – is a supply

chain

(31)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 31

The Matrix

Group 1

Group 2

Customer A

Customer B

Customer C

Customer D

Group 1

Group 2

Customer A

Customer B

Customer C

Customer D

Business 1

Product 1

Product 2

Business 2

Product 3

Product 4

X

•

We now place the customer list as column headings

repeating until finished

•

And then the products list as row headings repeating until

finished

•

For each product that flows to a customer, we put an “X” in

the cell

(32)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 32

Level 1

Level 2

Level 3

Level 4

Level 5

Scope

Configuration

Activity

Workflow

Transactions

Differentiates

Business

Differentiates

Complexity

Names Tasks

Sequences Steps Links

Transactions

Defines Scope:

The Basis for

Competitive

Performance

Targets are set

Differentiates

Capabilities:

Companies

implement their

operations

strategy based on

unique SC

configuration

Links, Metrics,

Tasks and

Practices:

Companies “fine

tune” their

operations

strategy

Job Details:

Defines practices

to achieve

competitive

advantage and to

adapt to changing

business

conditions

Details of

Automation:

Defines “process

gates” and

integration points/

requirements

Framework

Language

Framework

Language

Framework

Language

Industry or

Company

Specific

Language

Technology

Specific

Language

Stocked Product

S1

Source

Stocked Product

Supply-Chain

Source

Receive Product

S1.2

Receive Product

Standard SCOR definitions

Company/Industry definitions

EDI

XML

(33)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 33

Best Practices

Best practice: "

A current, structured, proven and repeatable

method for making a positive impact on desired operational

results

."

•

Current

Must not be emerging and can not be antiquated

•

Structured

Has clearly stated Goal, Scope, Process, and Procedure

•

Proven

Success has been demonstrated in a working

environment and can be linked to key metrics

•

Repeatable

(34)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 34

P1 Plan Supply Chain

Metrics

Cash-to-Cash Cycle Time

Cost to Plan SC

Order Fulfillment Cycle

Time

Plan Cycle Time

Return on SC Fixed Assets

Return on Working Capital

Best Practices

Capability to run What-if simulations

Change in Demand signal instantaneously

“reconfigures” Production and Supply Plans

CPFR

On-line visibility of demand

Re-balancing on full-stream supply and

demand

Supply/Demand Processes are fully

integrated

S&OP

Tools support balanced decision making

VMI

(35)

Best Practices

– What does it take to improve?

SCOR contains over 200 best practices today

•

Do you need to implement all 200+ in your company?

•

Implement a best practice IF it makes sense for your specific

processes, business, or industry.

How to determine fit?

•

For each best practice

›

Determine risk

›

Determine return

•

Pin in the quadrant

Low Risk

High Risk

quick

wins

sponsor

issue

nice to have

consider

carefully

Hi

gh

Re

turn

Low

Return

(36)

(37)

Supply Chain Prioritization

•

We use a tool called the Supply Chain Prioritization

Matrix to order the supply-chains according to

relevance

•

Each supply chain can be ranked by a number of

features

•

We suggest:

›

size (revenue, volume, and margin),

›

complexity (# SKUs)

›

strategic importance

•

You can also look at them by

›

Cash Consumption

›

Risk

›

Volume variability

(38)

•

Each supply chain is given a rank in each

•

We use a tool called the Supply Chain

Strategy Matrix to Identify priority strategic

features or attributes of supply-chains.

•

Each supply chain strategy is indicated by a

collection of ranked features:

Reliability

On time? Complete? Undamaged?

Responsiveness

From Customer Request to final acceptance

Flexibility

How long to scale up? How expensive to scale down?

Cost

Cost of Processes? Cost of Goods Sold?

Assets

Working Capital? Return on Investments?

(40)

•

We advocate using a simple ranking system for

industry comparison

•

Each rank corresponds to a specific percentile in

industry performance

•

We do not use averages or other statistical tests

•

Our key ranks:

Performance

Percentile Choices Interpretation

Superior

90

th

1

“Top 10” performer

Advantage

75

th

2

“Top Half” performer

Parity

50

th

2

“Half better/Half worse”

(41)

Supply-Chain

Strategy Matrix

Business

1

Business

2

Business

3

Ext

er

na

l

Reliability

S

Responsiveness

A

Flexibility

A

In

ter

na

l

Cost

P

Assets

P

•

Each unique

combination of ratings

defines Your Supply

Chain Strategy for the

channel

•

Think of the rating as

a desired state, NOT

where you want to

improve the most

Supply-Chain Strategy Matrix

S

A

P

(42)

The SCORcard

•

We use a tool called the

Supply Chain SCORcard™

to Identify performance

characteristics of

supply-chains.

•

Each SCORcard™ is built

from a subset of hundreds

of SCOR metrics.

•

For supply-chain

benchmarking we generally

use only Level 1, 2 and 3

metrics

•

The SCOR Manual provides

(43)

Supply Chain Balanced SCORcard

Standard Strategic (Level 1) Metrics

Attribute

Metric (Strategic)

Reliability

Perfect Order Fulfillment

Responsiveness

Order Fulfillment Cycle Time

Agility

Supply Chain Flexibility

Supply Chain Adaptability

†

Cost

Supply Chain Management Cost

Cost of Goods Sold

Assets

Return on Supply Chain Fixed Assets

Return on Working Capital

† upside and downside adaptability metrics

Cust

om

er

Int

(44)

SCORmark Benchmarking

–

Diagnoses the Areas Most

in Need of Improvement

(45)

Benchmark to Identify Process

Parity, Advantage, or Superiority

Attribute

Metric (level 1)

Company

Parity

Adv

Superior

Parity

Gap

Req

Gap

Reliability

Perfect Order Fulfillment

98%

92%

96%

98%

-6%

Responsiveness

Order Fulfillment Cycle Time

14 days

8 days

6 days

4 days

6 days

8 days

Flexibility

Ups. Supply Chain Flexibility

62 days

80 days

62 days

40 days

-18 days

Cost

Supply Chain Mgmt Cost

10.1%

10.8%

10.4%

10.2%

-0.7%

Assets

22 days

45 days

30 days

20 days

-23 days

Scoping Identifies one or more

targeted metrics for

improvement

Parity

Median of

Statistical Sample

Advantage Midpoint of Parity

and Superior

Superior

90

th

percentile of

population

Potential Improvement

Opportunity

(46)

The SCOR

®

framework

–

a cross-industry open standard

•

The five integrated processes provide a boundary-free view of the true

end-to-end Extended Supply Chain

•

Achieve Operations Excellence, Supply Chain Transformation, and

Continuous Innovation using Supply Chain Council frameworks &

resources

Supplier

Plan

Customer

Customer’s

Customer

Suppliers’

Supplier

Make

Source

Make

Deliver

Source

Make

Deliver

Source

Your Company

Source

Return

(47)

WRAP UP:

(48)

A

“

Game Plan

”

for Transformation

Why Should We Change?

•

Assess Current Operations – Set Objectives

•

Determine Market Benchmarks, Environment & Challenges

How Do We Change?

•

Create Strategy and “Vision” for the Future

•

Map “As Is” & “To Be” Business Processes & Systems

What is the Value of Changing?

•

Determine Critical Success Factors & “Windows of Opportunity”

•

Calculate Return on Investment

Getting Management Buy In & Investment

•

Present “Solution” Plan to Management

Getting Operations Buy In & Commitment

•

Pilot Implementation “Proof of Concept”… Rapid Results

Everyone Jumps on the Band Wagon

•

Deploy Transformation Plan Across the Enterprise

The World is Flat: Companies that leverage technology and the SCC’s

Resources to connect & collaborate will lead the 21

st

Century!

(49)

Supply Chain Council

Mexico & CENAM Chapter

(50)

Additional Benefits by Mexico & CENAM

Chapter

•

Establish & Professionalize the Practice of Supply Chain

Management in the Region, locally adapted to situations and

language

›

Models

›

Implementation Strategies

›

Training & Events

•

Participate in Best Practices Development Project and other SCC

Programs so regional input is included.

•

Host regional meetings for local networking and support.

•

Establish the Basis for competition in the Region.

›

KPI’s

›

Benchmarking

•

Establish the Best Practices in Business Management for the

Supply Chain area.

•

Membership and training fees will be adjusted for regional

economy.

Anticipated reduction of 25-40%

50

(